2.3.

5 Comparative statement

The comparative statement should be completely checked with accepted and rejected
tenders. It May be checked arithmetically and the remarks dealing with acceptance should be
scrutinized. The tender should be examined to see that

1 One the lowest tender is within the permissible limit of acceptance as per provisions of
delegation of financial power rules 1990

2 There is no interpolation, alteration, etc.

3 Deposits at call or available with all the tenders received.

4 If the tender accepted is significantly lower than the estimate, omission to revise the
later immediately should be noticed.(The order required the Executive Engineer to issue revised
technical sanction for the lower amount ).

5 The completion of the contract at connected documents should be examined. The

documents consists of drawings, specification, schedule of rates and the schedule of work to be
done. All should be signed by the contractor in token of acceptance and should be carefully
kept with the agreement.The documents should be sealed together. Final Final bill should be
checked with the original agreement which should otherwise remain in safe custody.

6 Orders issued to contractor during execution with regard to variation(Alteration and

addition) should be scrutinized, this should form part of contract.

7 The reason leading to delay in execution should be examined.

8 The method of upkeep of the register of works and work abstract should be reviewed.

9 The Final bill of the contractor should be compared with the original tender( and the
comparative statement) add variations there form be carefully securitized.Variation in quantities
of work carried out, and executions in the form of new or additional item of work deserve special
attention .

10 Validity of authority for departure from the estimate and contact should be carefully
checked.

Departure from the terms of contract e.g supply of material to the contractor not stipulated or in
excess of requirement should be investigated.

12 Sanction of work charged establishment should be examined thoroughly. It should be

seen that no unnecessary establishment was employed. The rules on the subject are very
restrictive it will be better if in the first instance list of work charged establishment charged to the
work is prepared and compared with the sanction accorded from time to time.

13 The quantities of various items of work paid for should be compared with the estimated
quantities and reason for variation be investigated.

14 The quantities of costly material for those which are not available in the market or are
being sold at very high rate as compared with the stock issued rate example given Steel,
copper, cement, Timber etc supplied to contractor for issued direct to work should be particularly
checked with the quantities actually required with reference to the quantities of various items of
work executed and pad for.

15 The “material at site accounts” should be carefully scrutinized to verify the correctness of
receipts, consumption and the balance of unused material shown there in . The disposal of
unused balance of material should also be verified.

16 Compensation to contractor for delay in start a work or its abandonment should be

investigated.

17 Any extra ordinary charge to work should be closely examined.

NOTE:Exemption from drafting the review of the selected work may be granted by the Director
General in individual cases on special consideration.

No WM(P) 4-1 / 25-40 dated 21.11.1960

2.4 Examination of Estimate;

In the New delegation of financial power rules acceptance of tender has been linked
with the issuing of Technical sanction instead of Administrative approval it has been decided
that

1 Particular of the technical sanction i.e the amount, the number and date of the order of
Technical section and the name of the authority issuing the same should be mentioned in the
the letter of acceptance of tender to be issued to contractor.

2 During the execution of work, the specification and quantities of different item approved
in the technical sanction shall not be charged without prior approval of the authority to issue the
technical section, such that it will record reason for the change if any

Condition number 1 and 2 above will be applicable to all works, with the the original additions /
alterations, special repairs and annual maintenance / repair works.
A certificate should be obtained from the head of the institution or from the occupants of the
building that works, addition / alterations, special repair and annual maintenance and repair has
been carried out satisfactorily before releasing the final payment to the contractor.

No FD FR 11-2 / 89 Government of the Punjab Finance Department dated 27th March 1990

2.5 Premium on composite Schedule of Rates 1979( regarding 4.5% and 10%)

reference: P&D Department No 7 / 143-P&D so (Engg)V-III/90 dated 06 10 1991 on the

subject noted above.

Reference is invited to government of the Punjab Finance Department letter No

FD(FR)11-8/71 Dated 10/03/1979. In para 4 of this letter it has been clearly mentioned that “
this variation of 15% is intended in area to cover the increase in the rates on account of grant of
premium on schedule rates, increase in the item rate as well as in the scope of work
etc”Furthermore the Government of the Punjab Finance Department vde their memo
numberRO(Tech)FD2-3/85 dated 10/06/1987 Have ordered in Para 5 that this variation of 15%
percent is intended to cover excess on account of any genuine reason which inter alia include
premium on schedule rates, increase in item rates at the increase in the scope of work etc. The
Finance Department authorised chief engineer of the administrative department to notify the
premium. accordingly the chief engineer have been notified different prema on different dates.
the last premium notified by the chief engineer Northern and south zone on 2/4 /1991 vide their
letter number 78-85/24-340 at number 50-75 volume V - 467/505 /PJ . The government of
Punjab Finance Department emphasize the need and importance of according technical section
before tender are accepted in the delegation of financial power rules 1990 6th edition and
ordered that acceptance of tender have now been linked with technical section and permissible
excess of 15% over the administrative approved cost has been splitt up as under

1 Technical section shall be subject to the condition that the excess over the amount for
which the work has been administratively approved does not exceed 10%

2 Acceptance of tender shall be subject to the condition that the rates quoted and our
amount Tendered are such that the total cost of the project will not exceed the amount, for which
technical sanction has been recorded by more than 4.5 % this has been done to make sure that
technical sanction is issued before construction is started.

From the following paragraph the position is in my view crystal clear that detailed
estimate should be technically sectioned by the competent officer up to maximum of 10% over
the administrative approval accommodate any access on account of any genuine reason which
inter alia include premium on the schedule rates, increase in item rates and the increase in the
scope of work.
 My observation is that out of any of the aforementioned items to increase maybe from 0
to 10% over administrative approval and the increased due to all those factor combined will also
remain up to 10% over administrative approval . This means if there is no increase in the scope
of work, no increase in the non schedule rates then the premium applied in technical sanction
may range from 0 to 10% as the case may be there is no need of announcing any particular
Premium for accordance of Technical sanction.
In this connection finance department No RP(TECH)FD.2-3/85/VOL IV Dated 19/10/91 is
fully agreed and chief engineer letter dated 02/0 09/91 is withdrawn .

2.6 Technical sanction regarding 4.5% and 10%

Reference of para 2 prefaceof delegation of financial powers ruled, 1990 in which

acceptance of tender has been linked with technical sanction and the permissible excess of
15% over the administratively approved cost of work has been split up as under

1 Technical Sanction shall be subject to the condition that the excess over the amount for
which the work has been administrative approved does not exceed 10% and

2 Acceptance of tender shall be subject to the condition that the rate quoted and / or
amount tendered are such that the total cost of the project will not exceed the amount for which
technical sanction has been accorded by more than 4.5 %.

This has been done to make sure that technical sanction is issued before construction is
started.

It has come to the notice of the Finance Department that 10% question allowed over
administrative approval to Accord the technical sanction under the delegation of financial power
rules 1990 is being utilised and premium / building / escalation and in some cases, a lump sum
amount equal to 10% of the administrative approved cost of the work has been added while
According technical section. This is against the letter and spirit of the delegation of financial
power rules. It is hereby clarified that the cushion up to 10% of the admInistratively approved
cost allowed under delegation of financial power rules for technical section cannot be utilised for
adjustment of cost due to change in quantity, specification and scope of work necessitated
because of site condition and in no case the under no circumstances can be utilised for
adjustment of premium rates.

This may be brought to the notice of all concerned under your administrative control for
strict compliance.

Extract of letter government of Punjab finance department No RO (TECH) FD 2-3/85 VOL IV Dated 07/01/1992
2.7 Delegation of Financial Power Rules 1990 (regarding inviting tenders after issuing
Technical sanctions)

Refer to this department circular letter of even number dated 27/03/1990 on the above
subject and to state that the instructions contained therein or not being followed in letter and
Spirit by the engineering staff during the execution of work. The earlier instructions are,
therefore, reiterated first compliance by all concerned with the following addenda
1 technical sanction be issued before inviting tender and the particular of Technical
sanction i.e amount, No and date of orders of Technical sanction be mentioned in the Tender
Inviting Notice.
2 Bill of quantities to be attached with the tender document in accordance with the
provision of para 2.58 of the B&R code should be based on the detail of Technical sanction
estimate.
3 During the execution of work, neither the specification and quantities of different items
approved in the technical sanction be changed, no any additional items scheduled / non
scheduled be approved / executed without prior approval of such change / new edition by
authority who has issued technical sanction such authority will record reason if any
4 The above requirement / inspections will be applicable to all work the original work
edition alteration special repair and annual maintenance / repair

Extract of letter government of Punjab finance department NO FD(FR)-I-2/89 Dated 24/06/1996

2.8 Scrutiny of Register of revenue and rent of building and lands

While in reviewing the Inspection Report it has been noticed that the inspecting officer
generally do not pay due attention to the unsatisfactory state of area of PW divisions so far as
the assessment and collection of the government revenue is concerned. The register of revenue
and register of rent of building and lands are not scrutinized thoroughly although the register are
two of the special items to which and inspecting officer is required to pay his personal attention
vide item 2and 9C of annexure A to chapter 32 of audit manual .

1- The inspecting officer fruit specifically scrutinized that the following categories of receipts
and other recoveries as due to government on account of services rendered are supplies made
are assessed and realise by the PW officers Promptly:-

i Rent of buildings
ii Rent furniture tents lawns.
iii Water and electricity charges.
iv Lease of government plantation and rights.
v Sale of government plantation And rights.
vi Charge for private use of government transport.
Vii Cost of stores sold.
2 Past experience has shown that the following type of irregularities are common in most
of the divisions of PWD

I Standard rates of Government residential building and other buildings available for
being let out or not fixed promptly.One e of the reason given by the Divisional officers in the
case of newly constructed building was that their standard rent had not been approved by the
competent authority. The divisional officer shall be advised 26 and charge the rents
provisionally pending approval of the standard rent by the competent authority.
Ii The standard runs are not revised periodically due to addition and alteration as required
under the rules.
Iii Rent bills are not issued regularly to the government servant concerned.
Iv The recovery of rent are not posted in the relevant records.
V The cases of area of rent outstanding for years together are not dealt with in an effective
manner.
VI Rent furniture, water and electricity charges is not included in the rent roles.
Vii Private use of government transport is either rarely shown in the log books of the
vehicles are recoveries are not affected in advance or are not shown in the register of
miscellaneous recoveries.
viii Stores are sold on credit all the sales on credit have been banned by the government.

3 The inspecting officer should personally look into this records and submit a report in
separate para of Inspection Report under the heading collection of government dues.

4 certificate to effect that compliance of these orders has been made shall be submitted
with the Inspection Report in the following forms

Certify that cases of collection of government dues including rent were reviewed and
irregularities noticed during the course of local audit has been pointed out in a separate Para of
the Inspection Report.

NoWM(P)14-34/2740 Dated 24/03/1960